The chancellor’s been busy and there were lots of announcements in the Autumn Statement aimed at making life that little bit more affordable. One of those announcements was that fuel duty will be frozen for the seventh year in a row – so, with the chancellor, ‘letting go’ of a rise in fuel duty – what impact will that have on your car’s fuel bill?
The current duty cost is 57.95p for every litre and the freeze is expected to save the average car driver £130 a year; if you drive a van, then you can expect to save £350. Fuel duty makes up the main cost of petrol and diesel, and let’s not forget that we also pay 20% VAT on fuel as well. The duty freeze is worth a total of £850 million and it’s the longest tax freeze for 40 years.
And what’s the reason for the government’s apparent generosity? Well, it’s all part of the plan to ‘keep Britain moving’. Not only will we be able to keep fuel in our cars, but with the government’s ambitious plan (worth £220 million) to improve our transport infrastructure, we should be able to get places with less chance of spending hours stuck in traffic.
So, whilst it’s good news on the fuel front – you should prepare yourself for a potential increase in your car or van insurance. Because in the same breath, the chancellor also announced a 2% increase in IPT (insurance premium tax), which perhaps demonstrates the art of give and take a little too literally.
It’s a bit of a mixed message – freezing fuel duty means it shouldn’t cost you more to fill up your tank but it could cost you more to actually stay on the roads and keep your motor insured.
The solution? Well, that’s easy – simply shop smarter for your car or van insurance. If you’re on the road, you need insurance, so choose it wisely. Half of our customers could save up to £257^^ just by using our comparison service; so, don’t miss out, keep those pounds in your pocket and see how much you could save right now.